Strategic Management in Healthcare Organizations

This solved assignment delves into the realm of strategic management within healthcare organizations. It examines the crucial aspects of strategic planning, encompassing long-term goals, organizational mission alignment, and the dynamic nature of strategies that necessitate revisions based on evolving government regulations and internal objectives. The document also highlights the significance of performance management in the public sector, emphasizing the role of top-level executives in driving strategic initiatives and securing approvals for amendments. Furthermore, it touches upon employee remuneration systems within healthcare organizations, considering factors like compensation models and their impact on organizational effectiveness.

Manage remuneration and employee benefit

Q1
A) Amount of money paid by the owner to its employees as a result of
contribution given by them to the organisation is called remuneration (Altbach, 2012).
Whereas, benefits refers to extra privileges given by the organisation to its staff
members. These privileges includes, pension plan, life insurance, paid leaves and
many more (Alden et.al. 2013.)
B) If appropriate Salary and benefit plans are made, then it will help organisation
in attracting new employees, retaining existing skilled staff and developing good
working environment. All these things will help organisation in attaining its strategic
goals e.g. in health care sectors, if all the doctors paid well on time then, they will
treat their patience in well organised manner. This will overall improving health of
employees and help hospitals in attain there strategic goals (Swayne, Duncan and
Ginter, 2012).
Q2
A) At the time of developing remuneration strategy for an organisation three
major components of taxation that should be kept in mind are-
‘In house’ Fringe benefit tax – On 22 October 2012, this tax was impose to remove
all the concessional tax benefits. Under this tax special agreement was formed (Rown
et.al. 2012) between employer and employee, before the employee start its work. E.g.
ward boys working in hospitals keen to know benefits that they will obtain from the
organisation.
Corporate taxes – employee salary should be planned by keeping in mind amount of
money that company has to pay out of its total profit in the name of corporate taxes to the
government (Brealey et.al. 2012).
Individual income tax – in remuneration plan of the company employee should be
made clear amount of tax that they have to pay to the government out of their total salary
(Schofield et.al. 2011).
B) There are different type of remuneration strategies that can be adopted by the
organisation (Horváthová and MIKUSOVA, 2011). Some of them are-

Annual increase – on the basis of the work performed by the employee at the end
of specific period as per that, their pay scale should be increased. This time period
can be of a year, 6 months and so on.
Incentives and bonus – apart from salary, employee should be given some extra
monetary benefits as per the extra work performed by them.
Profit sharing – many organisations now a days believes in shareing part of their
profit to their employees. This make them feel that they are important part of the
firm.
2 main strategies used by the health care organisations are-
Pay-for-performance – it is used by many health organisations, one of them is
CMC and main aim of the organisation is to motivate employees to work hard. As, on
the basis of their performance they are been paid.
Incentives – world health care organisation pay extra to their staff members, if
they provide more services apart from their normal working hours.
c) 3 employer of choice strategies an organisation
Training – no one is perfect at the time they entered the organisation so, there is a
need of proper training so, that they can work as per the firm’s requirements. This
will reduce employee’s frustration as, after training they will be able to perform their
work without mistakes.
Proper communication – clear lines of communication should be drawn within
the organisation so, that employees can feel free to ask their problems, get solution as
well as information about changes in policies of the organisation on time.
Provide growth opportunity – special workshops are arranged for the employees
so, that they can brush up their existing skills and develop new skills. This will help
in overall development and enhance their growth opportunities.

All these strategies will develop positive image of organisation in the eyes of its
employees, which results retaining the most competitive and talented workforce
within the firm. This approach is widely used by Department of health, National
health services and BMJ.
Q3
A) Agreements are made because remuneration are considered as, it is one of
the most essential factors on the basis of which standard of living of the
employees can be identified, in fact for the government tax received from
remuneration is the major source of revenue.
b)
 Identify all the revenue components of the healthcare organisation.
 Developing a flow chart, which describe detail information about an
individual.
 Essential steps must be taken, to keep proper record of check payment
made to the organisation.
 Payment made through banks should be displayed clearly.
 Review document to ensure that they cover each and every thing.

Figure 1 functional working of organisation
Q4
a) Some of the occupational groups (Schilling, 2013) are-
 Natural resources
 Finance (banks, corporate societies)
 Industries providing educational knowledge.
 Organisations that provide employment services.
From the above organisation except natural resource industrials all are agreement based. In
banks, hospitals and cells that are involve in recruitment and placement proceed only after
making appropriate agreement between employee and the organisation or the employer in
order to reduce chances of conflicts.
b) When the prices are set as per the going trends in the market, this may be
amount of money that the customer is willing to pay or the competitor prices are
called market rates (Arrow and Kruz, 2013).

Figure 2 salary survey of cardinal health
This survey was published by MEDSCAPE in ‘Survey of the incomes’ of doctors. Above
figure shows, salary trend as per the occupation of doctors involved in different health care
zones.
Figure 3 salary survey done by government employees
As, per the market trend, amount of salary paid to the doctors, ward boys in Cigna is
appropriate.Average salary paid to CSR is $32401, nurse case manager $74,484 and
pharmacy technician is $37,991 (Taghavian, 2015.).

Q5
Performance management is a wide term, which focuses on improving functional, team as
well as, organisational performance (Dooren, Bouckaert and Halligan, 2015).
Figure 4 performance management cycle
Cigna has lunged “growth program”. This program aim at motivating employees by
providing them benefits as well as remuneration. Moreover this, they make payment to
employees on the basis of their performance.
Q6
A) some steps to assure are –
 Fair work system should be adopted. As per the system, it’s mandatory for the
organisation to give minimum wages and protect employees from unfair dismissal.
 Work should be performed as per National employment standards (Vosko,
2012). It provides few benefits to employees such as- annual leave, paid holidays,
public holidays, payment of salary on time and so on.
 Special agreements are made which determining employment conditions and
consultation process within the organisation.

b) Policy ensuring timely payment to staff members -
Recruitment policy - it contains employment agreements, pay scale, and
negotiation procedure. All these things assure that, all the workers should be paid
on time.
If still employee face any problem or get cheated by any organisation then,
they have a right to sue them.
Q7
Sum total of remuneration and benefits paid by the employer to an employees
is called salary packages. As per the remuneration policy, whatever amount is
payable to an employee, from that certain amount of money is reduced because of
the scarified agreement made under FBT. Apart from this, as per some legislations
made by the government it’s mandatory for all the organisations to make regular
payment in the name of pension commonly known as employee fund.
Q8
Extra payments made to employees in order to motivate them are called
incentives. If these are added in the remuneration plan then, they will act as key
instrument to motivate employees.
Moreover these incentives can be paid annually, monthly or weekly. This will
motivate employees to give their full to the firm.
Q9
If after adopting particular remuneration strategy employment turnover ratio is
reduced and productivity has increased then, it means that existing policy is
beneficial for both the employees as well as for the organisation.
Once the remuneration plan is made it should be discuss with the managers as
well as employees, so that changes can be made as per their need. Further time to
time amendments should be made, as per the changes in government rules and
regulations. This help an organisation in reducing employment turnover and
training cost.

Q10
A) In the existing remuneration plans sometimes need for amendment arises at
certain places and it can made only after consulting top level management, directors
and other high authority of the organisation.
Apart from this, plans should be revised time to time as per the changes in
government rules and regulations. Along with it strategies made on the basis
of long term planning should be revalued on the basis of organisational
mission, vision, objectives and goals.
Figure 5 organisational structure in healthcare organisations
B) Plans and strategies are made so, that the organisation can attain all their
targets on time. As, these strategies are made by the top level member of the
organisation which includes, directors, CFO, CEO and COO. So, at the time of
amendment approval from higher authority are mandatory (Valentijn et.al. 2013).

References
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Vancouver
Vosko, L.F., 2012. Rights without Remedies: Enforcing Employment Standards in Ontario
by Maximizing Voice among Workers in Precarious Jobs. Osgoode Hall LJ, 50, p.845.